Real estate investors are closely monitoring mortgage rates in the hope that cooling inflation data will continue to push the 30-year mortgage rate lower going into 2024. While it appears as if it could fall to 5%, such a significant drop seems unlikely at this stage, CBS News reported.
Despite the low likelihood of such a drastic drop next year, experts are pointing to mortgage rates falling below the current average of over 7%. This comes as the Federal Reserve continues to show signs that it will introduce interest rate cuts as early as March 2024. Currently, interest rates are at a 22-year high, with the Fed keeping rate constant over its past two policy meetings.
Still, industry specialists urge homebuyers not to wait until mortgage rates fall below 5% before purchasing a property. “Regardless of what the Fed does with respect to rates, I would never advise prospective homebuyers to try to time the market or trajectory of mortgage rates,” Bob Driscoll, SVP and director of residential lending at Rockland Trust Bank explained. He advised prospective homebuyers to focus on factors in their control such as timing the transaction right according to their own personal financial position.